Martin Conboy, Director of The Outsourcing Guide, shared in an article at TheSauce.net.au some highlights of his conversation with Mon Ibrahim, Undersecretary of the Department of Science and Technology wherein they discussed the current state of the Philippine business process outsourcing (BPO) industry and its growth opportunities brought about by government-driven efforts.
These are the factors that the government and local BPO bodies are focusing on to further improve the outsourcing industry of the country:
Growth in "Next Wave Cities"
The Philippines bested India as the leader in call center outsourcing. However, for non-voice and complex outsourcing processes, India retains its top position and the Philippines, with more than 200,000 employees, comes in close second.
To sustain the country’s strong position in the outsourcing industry, it should promote and develop its "Next Wave Cities" - areas outside Metro Manila that have favorable business environments.
By 2016, 20 cities all over the Philippines should at least be employing 20,000 skilled and competent Filipinos.
The Filipino Workforce
Talent development of Filipinos is also a priority. Ibrahim said he’s closely working with the Information Technology and Business Process Association of the Philippines (IBPAP) in creating training programs.
For regions outside Cebu and Manila, it was discovered that people with good English skills have become harder to find despite the fact that the country has a high percentage of English-speaking population (70 percent).
Ibrahim also pointed out that they have partnered with local ICT councils, educational institutions, and local government bodies to analyze what each region lacks in the business aspect, and what needs to be done to overcome the challenges.
Reinforcing the Educational System
The government has implemented the K-12 system which adds two more years in the academe for Filipino students and aims to equip high school graduates with the necessary skills to qualify for basic jobs. The additional two years in high school include social sciences, business administration and management, and STEM (Science Technology Engineering and Mathematics).
Shortage in Supervisors and Team Leaders
Various sectors in the Philippines have a rapid movement of employees and structure. The government believes that the country has to improve its pool of supervisors in the middle management division to create more opportunities for career growth.
Getting Familiar with Foreign Culture
With the influx of foreign investors, employees should be made aware of their client's culture. The government is also working on cultural training programs. The Philippines already has strong affinity with the Western culture, though it still needs improvement when it comes to Japanese, European, and Australian cultures.
by: Sarah Joson
Monday, October 28, 2013 | Comments (0)
Category: Outsourcing Research / Trends
To get the most out of the outsourcing operation, businesses need to pay close attention to the metrics, proper training of the workers, as well as the strategy involved in the outsourcing process.
But the question is: which type of content should you outsource, and which should be kept in-house? Business2Community.com shares some insights from content marketing experts:
Work doesn’t stop once a blog went live. It includes monitoring the success rate or reach of each post and studying the trends for a certain industry so you would the topics to cover the next time you write for the blog. Once a blog post is published, the webmaster needs to promote the material through various platforms for more online visibility.
Forty percent of active blogs in the US today are used to promote products. However, not all companies have the necessary skills to create high quality articles. When an article is identified by search engines as relevant and of good quality, it has a higher chance of showing up in the top spots of search engine results.
Landing page content creation
According to a report created by HubSpot, companies that have a lot of landing pages are more exposed to users and potential leads. Whitepapers and ebooks are suitable types of landing pages that can be used to redirect users to the website.
Social media management
Managing social media accounts is probably one of the time-consuming processes in content marketing. You have to deal with followers in real-time and address their inquiries.
Visual content and design
Visual content and design require a lot of creativity. Visual content is a great means for branding and catching the interest of users. It is also a great way to express something that cannot be put into words.
Company mission statement
Nobody knows more about the company than the internal management. What business executives can do is to create a mission statement on their own then ask an expert to proofread the material before publishing it.
Branding guidelines and style
Branding is essential in any company. Before a brand is represented externally, every business owner should have a design brief to present to their contractors. This includes the tone of a marketing campaign and how they want to be communicated to users.
Data on target market
The internal team should have data regarding their target market. Information is collected through extensive research and survey among their clients.
Goals shouldn’t be dictated by the service provider. Business owners are the ones who tell the service provider what they want to achieve.
An article posted at CIO.com.au explained the IT outsourcing mistakes made in one of US’ big ventures. The $400 million Healthcare.gov project by the US federal government received a lot of flak soon after it was launched. What was expected to be an end-to-end portal for US citizens seeking healthcare insurance became a dreadful experience due to the bugs and problems encountered by users.
According to an article from the New York Times, the project failed due to missed deadlines, miscommunication among outsourced IT contractors, and last minute changes on the website’s basic features.
Peter Bendor-Samuel, CEO of outsourcing consultancy and research firm Everest Group said the US government and its contractors had too much on their plate. The impact of the consequences became a huge problem and when it was overlooked, complications multiplied.
Another important factor identified by Adam Luciano, principal analyst at sourcing analyst firm HfS Research, is that sometimes, contractors and project managers failed to focus on the user experience of major websites such as Healthcare.gov. Citizens need healthcare, and establishing a website aimed to help them handle a complex matter is a major responsibility. The goal is to make healthcare easier to understand and more accessible, but the people behind the project failed to see that.
These contributed to the rocky launch of the site:
Failure to gauge capacity and influx of users - They fell short in projecting how many profiles will be created which is why the website demonstrated a lot of glitches and it wasn’t scalable enough to cater to millions of users. Clients should look into the agility, coverage, and flexibility of an IT outsourcing contract.
They made hasty decisions - Large projects that require complex systems and technology should be tested multiple times before it is officially launched. Even small ones run through a rigorous testing period, so those that are hastily launched are sure to be unsuccessful. What buyers should do is study the strengths and weaknesses of IT outsourcing companies and analyze their track record.
Overlooked customer experience - The website was a big deal because it’s not as if users who needed healthcare information and assistance had options. The people behind the project overlooked the user friendliness of the website. Buyers should somehow come up with ways to create a good partnership with their providers. It can be in the form of reward system or incentives, which can help motivate providers to come up with solutions that can help improve a project.
They didn’t have contingency plans - Wrong rates were posted on the website and they were not able to change those immediately. This could lead to an onslaught of problems for both the federal health organization and users. It is now too late for them to correct the misinformed subscribers and they would have to address each person’s concerns and issues.
Information wasn’t properly circulated - The project was highly vulnerable to miscommunication because they had several providers. They also needed metrics that were uniform or at least similar to one another so that they know the progress of each segment.
Some providers didn’t comply with industry standards - This would be one of the most helpful tools for a project. It can easily point out if a provider will be able to deliver the requirements of the client.
Business owners have many reasons why they outsource certain processes of their company. Some do it to reduce costs, while others see that they lack the required skills and resources to get the job done.
However, over the past few years, a growing number of enterprises and small business were seen transferring processes. Reasons for this can be: business agility, stricter quality standards, and overhead costs from outsourcing.
Info.ISG-One.com shares important things that businesses should focus on before they launch a full-blown insourcing campaign.
Know the legal clauses. Some companies overlook the provisions in their current/expiring contract that can hold them legally liable. The clauses that business owners should really watch out for are the exact duration of the contract, intellectual property concerns, and tools, among others.
Consider your financial position. Business executives must see to it that their company is doing well money-wise because a business will be easily derailed if they fail to consider some factors that can affect their financial stability. These factors are: transition expenses as well as costs of performing due diligence, designing a strategy, and other requirements.
Make sure that the company is ready for the transition. Some companies outsource an entire department to a service provider. They must first acquire all the necessary tools and manpower to make the proper transition.
Design a new organizational structure. If a company decides to pursue insourcing, executives should consider that not all insourcing strategies can be easily modified according to the current structure of the organization. Executives should review the management, communications plan, and scalability of the entire company to maximize the insourcing operation and avoid risks at the same time.
Make estimates for the actual transition. A detailed transition plan will be useful to address challenges related to people, processes, technology, and knowledge transfer. Metrics should also be used to gauge the progress of even the smallest detail of the transition.